States go after pharma for deceptive marketing

“Authorities in some U.S. states have become more aggressive in accusing drug makers of deceptive marketing, widening the potential liability for an industry that has shelled out billions of dollars to settle investigations led by the federal government.

…some states have chosen to go it alone, a strategy that has resulted in hefty single-state awards and settlements in recent years.

“More states feel empowered to bring these kinds of actions solo,” said David Hart, an assistant attorney in charge of the financial fraud and consumer-protection section of the Oregon Justice Department.”

A Closer Look at the Cases

States that have filed lawsuits against drug makers include:

State

Companies

Drugs

Lawsuit Details

Arkansas

Johnson & Johnson

Risperdal

J&J is appealing a judge’s $1.2 billion penalty assessed in 2012 after a jury found the company violated state laws in its marketing of Risperdal. The appeal is pending in the Arkansas Supreme Court.

Kentucky

GlaxoSmithKline

Avandia

Kentucky’s attorney general sued Glaxo in February, alleging that the company misrepresented the safety of diabetes-drug Avandia. The lawsuit is pending.

Mississippi’s attorney general sued Sanofi and Bristol-Myers last year, claiming they falsely promoted Plavix as being superior to aspirin and didn’t properly disclose that the drug doesn’t work as well in some people. The lawsuitwas moved to federal court.

South Carolina

Johnson & Johnson, Teva

Risperdal (J&J); Provigil, Actiq, Gabitril (Teva)

J&J is appealing a $327 million penalty awarded by a state judge in 2011 in a Risperdal lawsuit. The case is pending at the South Carolina Supreme Court. The state attorney general also sued Teva’s Cephalon unit in 2011, alleging it promoted drugs for unauthorized uses. Teva filed a counterclaim seeking to dismiss the lawsuit. The claims are pending.

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